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The Ultimate Guide to Towers

Learn More About Selling Cell Tower Lease Tax Strategies

When it comes to identifying the amount you have to pay for your taxes, it is essential to choose your preferred structure before starting the sales process. The two main structures being used in cell tower lease buyout are granting your buyer an Easement, or granting your buyer a Lease Assignment. It is important to ask a tax advisor to see the best deal structure that is best for you since a Lease Assignment is usually taxed as a pre-paid rent or ordinary income, whereas an Easement allow your cell tower lease buyout transaction to qualify for a capital gains tax treatment.

Of course, Uncle Sam always wants his share but you can also defer your taxes if you sell a property, and invest the proceeds in a new property, allowing you to defer all capital gain taxes under the 1031 exchange. The time frame that an investment for 1031 exchange must be identified within 45 days and a maximum of 180 days. If you want to find out more about 1031 exchange for your cell tower lease, you can always talk to a cell tower consultant like David Espinosa. Can you split the proceeds of the cell tower lease sale into multiple tax years? Yes, that is possible. This is a common tax strategy that is utilized by sellers most especially towards the end f the year, splitting the lump-sum cell tower lease buyout into two payments. It is also possible to have a payment structured to be paid over many years but proceed with caution and ensure that the buyer will be conducting business to fulfill his financial obligations in the years to come. Indeed, there are a lot of options for sellers in a cell tower lease buyout, but it is important to be well informed by consulting a cell tower consultant like David Espinosa to tailor your transactions in meeting your needs. If your cell tower lease buyout is structured properly then it may qualify for a 1031 exchange.

If you are planning to conduct an installment buyout for your cell tower lease, remember that there are risks associated with it including a tenant going out of business or a tenant terminating the lease and rent payments. You may get unsolicited offers from companies but their offers do not really reflect the true valuation of your cell tower lease, so it is important to talk with a cell tower consultant because you might be selling your cell tower lease at a really cheap price. Allow David Espinosa to give you a sound advice when it comes to your cell tower lease buyout transaction, feel free to check his website or homepage now. Be an informed seller, and get the money you truly deserve!